Brett Schafer, The Motley Fool

Sat, May 31, 2025, 1:07 AM5 min read

• Coupang dominates the e-commerce landscape in South Korea.

• It is rapidly expanding in Taiwan.

• Even though the stock has surged recently, its valuation remains cheap for investors who are focused on the long haul.

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Coupang (NYSE: CPNG) stock, which had been trading above $25 in mid-February, sank to less than $20 in early April amid the market's negative reaction to President Donald Trump's tariffs. However, as of this writing, it sits at $28.45, a level it hadn't seen since the end of 2021.

The South Korea-based e-commerce and technology company has kept growing its market share in its home market, and it's beginning to successfully expand into another country. Yet even with Coupang's market cap now surpassing $51 billion, there is still plenty of room for its stock to run in 2025 and through the rest of the decade.

Shoppers in South Korea are flocking to Coupang. It has more than 20 million accounts in the country, which has a population of 52 million, and many of those accounts represent households with multiple people. Why is the platform seeing so much success? Because Coupang has built up an incredible e-commerce shipping system.

It offers same-day delivery, as well as overnight delivery by 7 a.m. for orders placed by midnight the day before. Returns can be handled simply by leaving an item in a Coupang reusable package outside your door. The free delivery for groceries and food delivery services it offers are much better than even Amazon manages. All this is included for a cheap monthly subscription to its Rocket Wow program, which also includes a streaming video service.

Through scale, automation, and brute-force efficiency, Coupang has been able to offer this incredible shopping experience while still generating positive cash flow.

On $31 billion in revenue over the past 12 months, the company has generated $1 billion in free cash flow. This was with revenue growing by 21% year-over-year on a currency-neutral basis and gross profit growing 31% year-over-year last quarter.

South Korea's annual retail spending amounts to hundreds of billions of dollars, so the company has a ton of room to keep expanding in its home market.

Management is not stopping at South Korea. It recently launched the Coupang e-commerce model in Taiwan with great success. The business segment that houses the Taiwan unit grew its revenue by 78% year-over-year last quarter to $1 billion on a currency-neutral basis.